Muthoot Microfin has entered into a Co-lending agreement with the State Bank of India (SBI) to empower women entrepreneurs, the company informed the exchange in a filing on Thursday.
After the partnership, Muthoot Microfin aims to extend its financial services to women entrepreneurs in rural and semi-urban regions across India.
The agreement says that both entities (Muthoot Microfin and SBI) will co-lend to members of Joint Liability Groups (JLGs) who are engaged in agricultural and allied activities as well as other income-generating enterprises.
"Our collaboration with SBI will enable us to deepen our reach by addressing the diverse financial needs of rural women. Providing these women entrepreneurs with access to credit and supporting them in their entrepreneurial journey is our aspiration with this partnership," said Thomas Muthoot, Managing Director, Muthoot Microfin Ltd.
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Beneficiaries of the services
The loan amounts in this agreement will range from a minimum of Rs 10,000 to a maximum of Rs 3,00,000, providing a substantial boost to women entrepreneurs from rural regions.
This range of financial assistance is designed to offer a substantial boost to women entrepreneurs, enabling them to expand their businesses and improve their livelihoods. The co-lending model aims to make credit more accessible and affordable for rural women, thereby supporting their entrepreneurial endeavors.
"I am convinced that, with this partnership, we will be able to offer a wide range of products and services to our clients, and most importantly, it will help us meet the growing demand of our women entrepreneurs in a cost-effective manner. Together with SBI, we are committed to fostering economic growth and self-sufficiency among women entrepreneurs in rural India," said Sadaf Sayeed, CEO, Muthoot Microfin.
By focusing on the financial needs of women entrepreneurs, the collaboration aims to create a positive socio-economic impact, promoting inclusive growth and development in rural India.
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